Leading indicators provide early signals about team performance and predict future outcomes, offering opportunities for proactive adjustments. Examples of these forward-looking metrics include sprint commitment adherence (how well teams meet their sprint goals), team velocity (how much work is completed within a sprint), and cycle time (the average time it takes for work items to move from start to completion). Understanding these metrics helps teams address potential issues before they impact delivery.

Lagging indicators measure actual results and validate whether past actions achieved desired outcomes. Common examples include customer satisfaction scores, product quality metrics, and revenue growth. However, because these metrics reflect past performance, they cannot be used to make immediate adjustments or prevent issues in real time.^[1]

Effective performance measurement requires balancing both types of indicators. Leading indicators guide daily decisions and process improvements, while lagging indicators validate strategic direction and long-term success. Teams should maintain dashboards that combine both perspectives to enable data-driven decision-making at all levels.